Current Year Quarter

Transcription

1 PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: X) CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE QUARTER ENDED 31 MARCH 2014 Individual Period To Date Cumulative Period Period Note 31 March March March March 2013 RM'000 RM'000 RM'000 RM'000 Continuing operations (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Restated) (Restated) Revenue A8 10,870 31,699 10,870 31,699 Direct cost (9,957) (12,580) (9,957) (12,580) Gross profit , ,119 Other income 471 1, ,621 Operating expenses (7,681) (6,484) (7,681) (6,484) Finance costs (3,397) (2,680) (3,397) (2,680) Share of results of associates, net of tax Share of results of joint ventures, net of tax 8,810 8,810 Profit before tax B , ,729 Tax credit/(expense) B5 134 (40) 134 (40) Profit for the period from continuing operations, net of tax , ,689 Discontinued operation Profit for the period from discontinued operation,net of tax A14 13,916 13,916 Profit for the period, net of tax , ,605 Profit attributable to: Owners of the Company (2,989) 23,682 (2,989) 23,682 Noncontrolling interests 3,176 1,923 3,176 1, , ,605 Earnings per share ("EPS") attibutable to owners of the company (sen) Basic EPS B13(a) Sen Sen Sen Sen from continuing operations (0.28) 1.58 (0.28) 1.58 from discontinued operation Diluted EPS B13(b) (0.28) 2.76 (0.28) 2.76 from continuing operations (0.27) 1.56 (0.27) 1.56 from discontinued operation (0.27) 2.74 (0.27) 2.74 The unaudited consolidated income statement should be read in conjunction with the audited financial statements for the year ended 31 December 2013 and the accompanying explanatory notes.

2 PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: X) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE QUARTER ENDED 31 MARCH 2014 Individual Period To Date Cumulative Period Period 31 March March March March 2013 RM'000 RM'000 RM'000 RM'000 Profit for the period , ,605 Items that may subsequently be classified to profit or loss: Foreign currency translation differences arising during the 1,563 3,005 1,563 3,005 financial period Cash flow hedged fair value changes during the period reclassified adjustments for amounts recognised in profit or loss (251) (251) Total comprehensive income 1,707 28,610 1,707 28,610 Attributable to: Owners of the Company (1,132) 25,862 (1,132) 25,862 Noncontrolling interests 2,839 2,748 2,839 2,748 1,707 28,610 1,707 28,610 The unaudited consolidated comprehensive income should be read in conjunction with the audited financial statements for the year ended 31 December 2013 and the accompanying explanatory notes.

3 PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: X) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2014 As At End Of As At End Of Previous Current Financial Year 31 March December 2013 Note RM'000 RM'000 (Unaudited) (Audited) Noncurrent assets Plant and equipment A9 546, ,216 Intangible assets Investment in associates 1,888 1,315 Investment in joint ventures 495, ,698 Prepayment B8 211, ,238 1,256,015 1,180,542 Current assets Trade receivables 14,342 20,386 Other receivables, deposits and prepayment B9 218, ,475 Tax recoverable Cash and bank balances 22,010 62, , ,029 TOTAL ASSETS 1,510,616 1,452,571 EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital 108, ,453 Share premium 486, ,025 Treasury shares (231) (231) Retained earnings B15 282, ,972 Other reserves 22,018 22,738 Equity attributable to owners of the Company 899, ,957 Noncontrolling interests 103, ,404 Total equity 1,002,702 1,003,361 Noncurrent liabilities Loans and borrowings B7 257, ,023 Derivatives liability 1,235 1, , ,466 Current liabilities Trade payables Other payables and accruals B10 97,148 93,149 Loans and borrowings B7 151,687 82,012 Tax payable , ,744 Total liabilities 507, ,210 TOTAL EQUITY AND LIABILITIES 1,510,616 1,452,571 Net assets per share attributable to owners of the parent (RM) The unaudited consolidated financial position should be read in conjunction with the audited financial statements for the year ended 31 December 2013 and the accompanying explanatory notes.

4 PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: X) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH 2014 <Attributable to Equity Holders of the Company> Noncontrolling Total <Nondistributable> Distributable Interest equity Reserve of disposal group Share Share Treasury Other classified as Retained Note capital premium shares reserves held for sale earnings Subtotal RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At 1 January 2013 (Audited) 85, ,268 (231) 8,267 (23,244) 214, ,425 82, ,655 Comprehensive income Profit for the financial period 23,682 23,682 1,923 25,605 Other comprehensive income Foreign currency translation differences 2,180 2, ,005 Total comprehensive income for 2,180 23,682 25,862 2,748 28,610 the period Transactions with owners Share options granted under ESOS 1,847 1,847 1,847 Shares issuance pursuant to private placement 8,513 77,568 86,081 86,081 8,513 77,568 1,847 87,928 87,928 At 31 March 2013 (Unaudited) 93, ,836 (231) 12,294 (23,244) 237, ,215 84, ,193 At 1 January 2014 (Audited) 108, ,025 (231) 22, , , ,404 1,003,361 Comprehensive income Profit for the financial period (2,989) (2,989) 3, Other comprehensive income Foreign currency translation differences 1,900 1,900 (337) 1,563 Cash flow hedge (43) (43) (43) Total comprehensive income for 1,857 (2,989) (1,132) 2,839 1,707 the period Transactions with owners Share options exercised A Share options granted under ESOS (2,501) (2,501) (2,501) Transfer to share premium for share options exercised 76 (76) (2,577) (2,366) (2,366) At 31 March 2014 (Unaudited) 108, ,219 (231) 22, , , ,243 1,002,702 The condensed unaudited consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the year ended 31 December 2013 and the accompanying explanatory notes.

5 PERISAI PETROLEUM TEKNOLOGI BHD (Company No.: X) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 MARCH 2014 Cash flow from operating activities 3month ended 31 March March 2013 RM'000 RM'000 (Unaudited) Profit before taxation Continuing operations 53 15,489 Discontinued operation A14 10,177 Adjustment for : Depreciation of plant and equipment 9,308 13,734 Net unrealised (gain)/loss on foreign exchange (69) Share of results of associates (937) (153) Share of results of joint ventures (8,810) Share options granted under Employees' share option scheme ("ESOS") 2,501 1,847 Interest expense: continuing operations 3,397 2,680 discontinued operations A Interest income (7) (261) Operating profit before working capital changes 5,436 44,431 Changes in working capital : Change in receivables (4,176) (7,066) Change in payables 4,614 (25,835) Cash generated from operating activities 5,874 11,530 Interest paid (4,371) (3,598) Interest received Tax paid (17) (17) Tax refunded 271 Net cash generated from operating activities 1,764 8,176 Cash flow from investing activities Subscription of shares in an associates (40) Prepayment of plant and equipment (96,758) (64,886) Purchase of plant and equipment (20) (1,154) Net advances (to)/from associates (7) Net advances (to)/from joint ventures (1,623) Purchase of intangible assets (75) Net cash used in investing activities (98,448) (66,115) Cash flow from financing activities Payment of hire purchase (27) 557 Net proceeds from shares issuance pursuant to private placement Gross proceeds 87,691 Share issuance expenses (1,610) Proceeds from share issuance pursuant to ESOS A6 135 Drawdown of loans and borrowings 70,128 Repayment of loans and borrowings (13,937) (16,589) Net cash generated from financing activities 56,299 70,049 Net (decrease)/increase in cash and cash equivalents during the period (40,385) 12,110 Effect of exchange rate changes (347) (6,037) (40,732) 6,073 Cash and cash equivalents at beginning of period 53,376 30,434 Cash and cash equivalents at end of period * 12,644 36,507 * Cash and cash equivalents comprise : Cash and bank balances 22,010 39,731 Bank overdraft (9,366) (11,824) Bank balances as held for sale 8,600 12,644 36,507 The condensed unaudited consolidated cash flow statement should be read in conjunction with the audited financial statements for the year ended 31 December 2013 and the accompanying explanatory notes.

6 NOTES TO THE ACCOUNTS PART A EXPLANATORY NOTES PURSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARD ( MFRS ) Basis Of Preparation The interim financial statements are unaudited and have been prepared in accordance with the requirements of MFRS 134: Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 December These explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of Perisai Petroleum Teknologi Bhd ( Perisai or the Company ) and its subsidiaries ( Group ) since the financial year ended 31 December Changes In Accounting Policies a) The Group adopted the following Amendments/Improvement to Standards and new IC Interpretations ( IC Int ) effective as of 1 January 2014: Amendments/Improvement to MFRSs MFRS 10 Consolidated Financial Statements: Investment Entities MFRS 12 Disclosure of Interest in Other Entities: Investment Entities MFRS 127 Separate Financial Statements: Investment Entities MFRS 132 Financial Instruments: Presentation Offsetting Financial Assets and Financial Liabilities MFRS 136 Impairment of Assets Recoverable amount Disclosures for NonFinancial Assets MFRS 139 Novation of Derivatives and Condition of Hedged Accounting New IC Int IC Interpretation 21 Levies The adoption of the above Amendments to MFRSs and new IC Int did not have any material effect on the financial statements of the Group. b) At the date of this report, the following new MFRS and Amendments/Improvement to MFRSs were issued but not yet effective and have not been applied by the Group: MFRS 9 Financial Instruments (IFRS 9 issued by International Accounting Standards Board ( IASB ) in November 2009)* MFRS 9 Financial Instruments (IFRS 9 issued by IASB in October 2010)* MFRS 9 Financial Instruments: Mandatory Effective Date of MFRS 9 and Transition Disclosures (Amendments to MFRS 9 and MFRS 7)* MFRS 9 Financial Instruments: (Hedged Accounting and amendments to MFRS 9, MFRS 7 and MFRS 139)* Amendments to MFRS 7 Financial Instruments: Disclosures*** Mandatory Effective Date of MFRS 9 and Transition Disclosure Amendments to MFRS 119 Defined Benefit Plan: Employee Contribution** Annual Improvements to MFRSs Cycle** Annual Improvements to MFRSs Cycle** *Effective for financial periods beginning on or after to be announced by the Malaysian Accounting Standard Board ** Effective for financial periods beginning on or after 1 July 2014 ***Applies when MFRS 9 is applied 1

7 The Group will adopt the above new MFRS and Amendments/Improvements to MFRSs when it becomes effective in the respective financial periods. The adoption of the above mentioned amendments to MFRSs are not expected to have any material effect to the financial statements of the Group upon initial recognition, except MFRS 9 Financial Instruments. The Group will assess the financial implications of MFRS 9 Financial Instruments when the full standard is issued and effective. 3. Seasonal Or Cyclical Factors The Group s operations are not materially subject to any seasonal or cyclical factors except for severe weather conditions. 4. Unusual Items Due To Their Nature, Size Or Incidence There were no unusual items affecting assets, liabilities, equity, net income and cash flows during the financial period ended 31 March Changes In Estimates There were no significant changes in estimates that had a material effect on the results for the financial period ended 31 March Debts And Equity Securities Save as disclosed below, there were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities during the financial period ended 31 March 2014: i. New ordinary shares of RM0.10 issued each pursuant to the exercise of options granted under the Employee Share Option Scheme at the option price of RM0.785 per ordinary share were as follows; ended Number of ordinary shares Issue Price RM 31 January ,000 RM , February ,000 RM , March 2014 Nil Nil Nil As at 31 March 2014, 400,000 shares of RM0.10 each were held as treasury shares in accordance with the requirement of section 67A of the Companies Act, Dividends Paid There were no dividends paid during the financial period ended 31 March

8 8. Segmental Information Individual Period (Restated) To Date Cumulative Period Period (Restated) 31 March March March March 2013 RM 000 RM 000 RM 000 RM 000 Segment Revenue Revenue from continuing operations Marine vessels 10,870 11,765 10,870 11,765 Production unit 19,500 19,500 Others Total revenue 10,870 31,699 10,870 31,699 Segment Results Results from continuing operations Marine vessels 6,284 9,580 6,284 9,580 Production unit (6,991) 11,700 (6,991) 11,700 Others Share of results in associates Share of results in joint ventures (8,987) 937 8,810 (9,704) 153 (8,987) 937 8,810 (9,704) 153 Total results 53 11, , Valuation Of Property, Plant and Equipment The Group did not revalue any plant and equipment during the financial period ended 31 March Subsequent Events Save as disclosed below, there were no material events subsequent to the financial quarter ended 31 March 2014; a) On 10 April 2014, Perisai completed the listing and quotation of a private placement of up to 10% of the issued and paid up share capital as follows; Number of Ordinary shares Issue Price RM 108,419,998 RM ,882,597 b) On 22 April 2014, Perisai Drilling Holdings Sdn Bhd, a whollyowned subsidiary of Perisai incorporated two (2) new whollyowned subsidiaries companies in the Federal Territory of Labuan, Malaysia under the Labuan Companies Act 1990, the particulars of which are set out in the table below : Name of Company Perisai Pacific 102 (L) Inc Perisai Pacific 103 (L) Inc Issued and Paidup Share capital USD1,000 divided into 1,000 ordinary shares of USD1.00 each USD1,000 divided into 1,000 ordinary shares of USD1.00 each The incorporation of these two (2) whollyowned subsidiaries is for the purposes of asset ownership within its drilling division. 3

9 c) On 8 May 2014, Perisai had announced that its 51% owned subsidiary Perisai Offshore Sdn Bhd ( Perisai Offshore ) had secured a Letter of Award ( Award ) from Petronas Carigali Sdn Bhd ( PCSB ) dated 24 April 2014 for the provision of the jack up drilling rig, Perisai Pacific 101. The Award is valued at USD158 million for the three (3) year duration of the Award. All conditions relating to the disclosure of the Award had been secured on 8 May The works required under the Award would be fully undertaken and performed by the Company s wholly owned subsidiary, Perisai Drilling Sdn Bhd and managed by Hercules Offshore, Inc as the drilling operations and maintenance manager of the Perisai Pacific 101. Actual operations are expected to commence in the middle of 2014 in support of PCSB s drilling campaign. 11. Changes In Composition Of The Group Save as disclosed below, there were no changes in the composition of the Group during the financial year ended 31 March a) On 19 March 2014, the Company incorporated a new associate company, Larizz Energy Services Sdn. Bhd.; in which the Company holds a 40% equity interest whilst the remaining 60% is held by Zainol Izzet bin Mohamed Ishak, the managing director of the Company. 12. Changes In Contingent Liabilities Save as disclosed below, the Directors are not aware of any material contingent liabilities, which, upon becoming enforceable, may have a material impact on the financial position of the Group during the financial period ended 31 March Corporate Guarantee of RM533.15million issued by the Group for banking facilities granted to its joint ventures. 13. Changes In Contingent Assets The Directors are not aware of any material contingent assets, which, upon becoming enforceable, may have a material impact on the profit or net assets value of the Group during the financial period ended 31 March Discontinuing Operations On 26 December 2013, the Company completed its disposal of 49% equity interest in SJR Marine (L) Ltd ( SJR Marine ) as mentioned in Note A15 and B6 of the Bursa quarterly announcement for the financial quarter ended 31 December The results from this subsidiary prior to the completion date of disposal are presented separately on the consolidated statement of profit or loss and other comprehensive income as profit for the financial year from discontinued operations in accordance with MFRS 5 Non Current Assets Held For Sale and Discontinued Operations. Subsequent to the disposal the result of the remaining 51% equity interest in SJR Marine was reflected under the caption of share of results of joint ventures. 4

10 15. Material Commitments Save as disclosed below, the Group is not aware of any material commitments incurred or known to be incurred by the Group which upon becoming enforceable may have a material impact on the profit or net assets value of the Group as at 31 March RM Million Capital expenditure Approved and contracted for: Construction of three (3) Jackup Drilling rigs 1, Significant Related Party Transactions Save as disclosed below, there were no significant related party transactions during the financial year ended 31 March The recurrent related party transactions with the Group are as follows: Individual Period Cumulative Period To Date Period 31 March March March March 2013 RM 000 RM 000 RM 000 RM 000 Bareboat charter of vessels to Emas Offshore Pte. Ltd.* 3,852 3,575 3,852 3,575 Bareboat charter of vessels to Emas Offshore (M) Sdn. Bhd.* 7,018 6,513 7,018 6,513 Vessel maintenance expenses charged by Emas Offshore Services Pte. Ltd* Vessel maintenance expenses charged by Emas Offshore Services (M) Sdn Bhd* Agency fee charged by Larizz Petroleum Services Sdn. Bhd.# Agency fee charged by Perisai Offshore Sdn. Bhd.# Secondment of personnel to Victoria Production Services Sdn Bhd^ *The transactions above involves Emas Offshore Pte Ltd, Emas Offshore (M) Sdn Bhd, Emas Offshore Services (M) Sdn Bhd and Emas Offshore Services Pte Ltd which are wholly owned subsidiaries of Ezra Holdings Limited ( Ezra ). Ezra is an indirect major shareholder of Perisai which holds Perisai s shares through its wholly owned subsidiaries HCM Logistics Limited, Emas Offshore(M) Sdn Bhd and its 45.7% associate company EOC Limited ( EOC ). #Agency fees charged by Larizz Petroleum Services Sdn Bhd ( LPSSB ) and Perisai Offshore Sdn Bhd ( POSB ) is a recurrent related party transaction as Encik Zainol Izzet Bin Mohamed Ishak is a major shareholder of LPSSB and POSB. He is also a director and one of the substantial shareholders of Perisai. 5

11 ^The transactions above involving Victoria Production Services Sdn Bhd being a Joint Venture between Perisai and EOC. EOC is a major shareholder of Perisai and a 45.7% associate company of Ezra. Ezra is an indirect major shareholder of Perisai, which holds Perisai Shares through HCM Logistics Limited, Emas Offshore (M) Sdn Bhd and EOC. 17. Fair Value Measurements All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, the lowest level input that is significant to the fair value measurement as a whole. (a) Level 1 fair value measurement are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; (b) Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and (c) Level 3 fair value measurements are those derived from inputs for the asset or liability that are not based on observable market data (unobservable inputs). The following table provided the fair value measurement hierarchy of the Group s assets and liabilities: Liabilities measured at fair value Amount Level 1 Level 2 Level 3 RM 000 RM 000 RM 000 RM 000 Group Derivative financial instruments cross currency interest rate swaps * 1,235 1,235 There were no transfers between Level 1 and Level 2 during the quarter ended 31 March 2014 and the Group does not have any financial instruments classified as Level 3 as at 31 March * The valuation technique used to derive the Level 2 is as disclosed in Note B17. 6

12 PART B EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE MMLR 1. Performance Review For the current quarter and period ended 31 March 2014, the Group generated total revenue from continuing operations of RM10.87million, which represent a decrease of RM20.83million as compared to RM31.70million in the corresponding quarter and period ended 31 March The decrease was mainly due to the Rubicone (Mobile Offshore Production Unit) has not generated any revenue for the financial quarter and period ended 31 March The profit before tax ( PBT ) from continuing operations for the current quarter and period ended 31 March 2014 amounted to RM0.05million, which represents a decrease of RM11.68million as compared to RM11.73million in the previous corresponding quarter and period ended 31 March The decrease was mainly due to lower revenue generated as mentioned in the 2 nd paragraph above and the loss from Enterprise 3 (Derrick Pipe lay Barge). However the loss was mitigated by profits from Perisai Kamelia (Floating Production, Storage and Offloading unit ( FPSO )) as reflected in the share of results of joint ventures. The total profit net of tax for the current quarter ended 31 March 2014 amounted to RM0.19 million which represent a decrease of RM25.42million as compared to RM25.61million in the corresponding quarter ended 31 March The decrease was mainly due to the same reasons as mentioned in the immediate paragraph above. The result from SJR Marine which owns the Enterprise 3 was reflected under profit from discontinued operation prior to its disposal. Subsequent to its 49% equity interest disposal on 26 December 2013, the result of the remaining 51% equity interest was captured under the caption of share of results of joint ventures. 2. Material Change in Profit Before Tax ( PBT ) In Comparison to the Preceding For the current financial quarter ended 31 March 2014, the Group recorded a PBT of approximately RM0.05million as compared to loss before tax of RM0.81 million in the preceding quarter. The increase was mainly due to the net effect of the share of profit from the FPSO for the full quarter and the losses incurred by Enterprise Future Prospects Perisai had recently secured a 3 years award from PCSB valued at USD158 million for its first jack up drilling rig, Perisai Pacific 101. The actual operations are expected to commence in the middle of 2014 and contribute positively to the profit of Perisai. Perisai Kamelia, a FPSO unit had commenced its 3 years contract in November 2013 and all the eight (8) offshore support vessels have long term charter until August Perisai is currently exploring various opportunities for its Enterprise 3 (Derrick Pipe Lay Barge) and Rubicone (Mobile Offshore Production Unit). Perisai Group s results would be improved in the event new charters are secured for its two (2) assets. The award secured for Perisai Pacific 101 signified Perisai s entry into the offshore drilling segment. The outlook of jackup rig market particularly in Malaysia is expected to be robust. This augurs well for the second and third jackup drilling rigs, which are expected to be delivered in the second quarter of 2015 and July 2016 respectively. 7

13 4. Profit Forecast and Profit Guarantee The Group did not announce or disclose any profit forecast or profit guarantee in any public documents for the financial quarter ended 31 March Income Tax Expense Individual Period Cumulative Period To Date Period 31 March March March March 2013 RM 000 RM 000 RM 000 RM 000 Based on result for the period from continuing operations Current period provision Overprovision for taxation in prior year 20 (154) (154) 40 Deferred taxation (134) 40 (134) 40 The effective tax rate for the current quarter and financial period ended 31 March 2014 were lower than the statutory tax rate mainly due to certain subsidiaries being subject to fixed tax rates under the Labuan Business Activity Tax Act, Corporate Proposal (a) There were no corporate proposals announced but not completed as at the reporting date. (b) Status of Utilisation of Proceeds The proceeds raised during the private placement were approved for the following activities and status on the funds utilised as at 7 May 2014 are summarised below: Purpose Repayment of bank borrowings and/or capital investment for jackup drilling rig(s) and/or Mobile Offshore Production Unit(s) ( MOPU ) *Working capital: Drilling and/or MOPU operational expenses Management and administrative expenses of the Perisai Group Approved Utilisation RM Million Amount Utilised RM Million Expected Time Frame For The Full Utilisation Within one (1) year 45.0 Within one (1) year Within one (1) year Estimated listing expenses Fully utilised Total

14 7. Borrowings And Debt Securities The Group s borrowings and debt securities as at 31 March 2014 are as follows: Short Term RM 000 Long Term RM 000 Secured Term loan 72, ,770 Hire purchase Multicurrency medium term note ( MTN ) Revolving credit facilities , ,294 Bank overdraft 9,366 Total 151, ,427 The Group borrowings are denominated in the following currencies: Short Term RM 000 Equivalent Long Term RM 000 Equivalent Ringgit Malaysia 9, US Dollar SG Dollar 142, ,770 57,294 Total 151, , Prepayment Prepayment consists of the deposit paid for the design, construction, equipping, commissioning and delivery of the second (2 nd ) and third (3 rd ) jack up drilling rigs including deposit provision for the third (3 rd ) Jack up Drilling Rig. 9. Other Receivables Included in other receivables is a 20% deposit paid amounting to RM million (USD41.6million) for the design, construction, equipping, commissioning and delivery of the first (1 st ) Jack up Drilling Rig. 10. Other Payables Included in other payables is a deposit provision amounted to RM63.7million (USD19.5million) for the design, construction, equipping, commissioning of the third Jack up Drilling Rig. 9

15 11. Changes In Material Litigation There were no material litigation for the financial quarter ended 31 March 2014 save for the claim below: SJR Marine (L) Ltd ( SJR Marine ) had on 2 April 2009 commenced an arbitration proceeding in London in accordance with the London Maritime Arbitrators Association against Superior Energy Services LLC ("Respondent") in respect of breach by the Respondent of three agreements between the parties namely: (i) Losses arising from the Respondent s breaches of the Bareboat Charterparty Agreement dated 13 July 2006 ( Bareboat Charterparty ) for the sum of USD1,173, (equivalent to approximately RM3,360,132.29); (ii) Losses arising from the Respondent s breaches of the Vessel Purchase Agreement dated 13 July 2006 ( Vessel Purchase Agreement ) for the sum of USD16,200, (equivalent to approximately RM50,119,891.04); (iii) Losses arising from the Respondent s breach of the Settlement Agreement dated 19 June 2008 for the sum of USD1,387, (equivalent to approximately RM4,293,709.38), arising from the Respondents wrongful call for payment under the letter of credit; and (iv) Costs and interest thereon, SJR Marine had further filed its point of claim against the Respondent on 7 December 2009 and the Respondent had filed its defence and counterclaim against SJR Marine in the sum of USD6,993, (equivalent to approximately RM21,636,355.63) on 7 March Further to the counterclaim made by the Respondent, SJR Marine had filed its points of reply and defence to counterclaim on 27 May Subsequently, SJR Marine had submitted its questionnaire to the tribunal on 1 December 2011 and awaiting the submission of the same by the Respondent. The solicitors are of the view that SJR Marine is likely to succeed in its claims against the Respondent under the Vessel Purchase Agreement for the late delivery of the vessel and defects and nonprovision of davits to the vessel and under the Bareboat Charterparty for crew wages. However, the solicitors are of the view that SJR Marine s claim for repair costs, downtime and overpayment of hire under the Bareboat Charterparty is arguable due to the lack of documentary evidence at this stage. SJR Marine is a 51% joint ventures of Perisai. 12. Dividends Payable There were no dividends declared for the financial period ended 31 March

16 13. Earnings Per Share ("EPS") Basic earnings per share is calculated by dividing the profit attributable to the owners of the Company by the weighted average number of ordinary shares in issue during the financial year, excluding treasury shares held by the Company. (a) Basic Earnings Per Share Individual Period Cumulative Period To Date Period 31 March March March March 2013 RM 000 RM 000 RM 000 RM 000 (Restated) (Restated) Profit/(loss) from continuing operations (2,989) 9,766 (2,989) 9,766 Profit from discontinued operation 13,916 13,916 Profit attributable to owners of the Company net of tax (2,989) 23,682 (2,989) 23,682 Weighted Average/Number of ordinary shares in issue ( 000) 1,084, ,146 1,084, ,146 Basic earnings per share (sen): from continuing operations (0.28) 1.58 (0.28) 1.58 from discontinued operation Total (sen) (0.28) 2.76 (0.28) 2.76 (b) Diluted Earnings Per Share Individual Period Cumulative Period To Date Period 31 March March March March 2013 RM 000 RM 000 RM 000 RM 000 (Restated) (Restated) Profit/(loss) from continuing operations (2,989) 9,766 (2,989) 9,766 Profit from discontinued operation 13,916 13,916 Profit attributable to owners of the company net of tax (2,989) 23,682 (2,989) 23,682 Weighted Average/Number of ordinary shares in issue ( 000) 1,084, ,146 1,084, ,146 Effect of dilution ( 000) Share options 16,048 7,393 16,048 7,393 Adjusted weighted average number of ordinary shares in issue and issuable ( 000) 1,100, ,539 1,100, ,539 Diluted earnings per share (sen): from continuing operations (0.27) 1.56 (0.27) 1.56 from discontinued operation Total (sen) (0.27) 2.74 (0.27) Auditors Report On Preceding Annual Financial Statements The auditors report on the latest audited financial statements was not qualified. 11

17 15. Realised and Unrealised Retained Earnings As at As at 31 March December 2013 Total retained earnings RM 000 RM 000 (Unaudited) (Audited) Company and subsidiaries realised profit 289, ,198 unrealised profit , ,532 Associates realised profit 1, unrealised loss (494) 167 1, Joint ventures realised profit 14,952 6,079 unrealised loss (61) 2 14,891 6,081 Less: Group consolidated adjustments (22,397) (20,519) Total Group retained earnings as per unaudited consolidated financial statements 282, , Notes to Condensed Consolidated Statements of Comprehensive Income 3 months RM 000 Todate 3 months RM 000 Profit /(loss) before tax is arriving at after charging/(crediting): Interest income (7) (7) Other income (310) (310) Interest expenses 3,397 3,397 Depreciation and amortisation 9,308 9,308 Realised foreign exchange gain (83) (83) Unrealised foreign exchange gain (71) (71) Realised foreign exchange loss 6 6 Unrealised foreign exchange loss

18 17. Financial Instruments (a) Details of derivative financial instruments outstanding as at 31 March 2014 are set out below: Type of derivative Contract/Notional Amount Fair value liabilities RM 000 RM 000 Cross Currency Interest Rate Swaps ( CCRIS ) less than 1 year nil nil 1 year to 3 years 59,577 1,235 More than 3 years nil Nil There have been no changes since the end of the previous financial year ended 31 December 2013 in respect of the followings: (i) (ii) (iii) (iv) the credit risk and market risks associated with the derivatives; the cash requirements of the derivatives: the policies in place for mitigating or controlling the risk associated with the derivatives: and the related accounting policies. (b) Disclosure of gains/losses arising from fair value changes of financial liabilities The Group determines the fair value of the derivative financial liabilities relating to the CCIRS using valuation technique which utilises data from recognised financial information sources. Assumptions are based on market conditions existing at each reporting date. The fair value is calculated as the present value of the estimated future cash flow using an appropriate market based yield curve. As at 31 March 2014, the Group has recognized derivative financial liabilities of RM1.235million, a decrease of RM0.208million from previous financial year ended 31 December 2013, on remeasuring the fair value of the derivative financial instrument. The corresponding increase has been included in equity in the cashflow hedging reserve of which RM0.208million for the current quarter was transferred to the income statement to offset the unrealized gain of RM0.208 which arose from the strengthening of SGD against USD. This has resulted in an increase in the cashflow hedging reserve as at 31 March 2014 by RM0.043million to RM0.674million from the preceding financial year ended 31 December The cashflow hedging reserve represents the deferred fair value losses relating to the CCIRS. As the Group intends to hold the Multicurrency Medium Term Notes ( MTN ) and associated derivative instrument to maturity, any changes to the fair value of the derivative instrument will not impact the income statement. 18. Authorised For Issue The interim financial statements were authorised for issue by the Board in accordance with a resolution of the Board of Directors dated 15 May By Order of the Board Perisai Petroleum Teknologi Bhd Lim Seck Wah (MAICSA No: ) M.Chandrasegaran a/l S. Murugasu (MAICSA No: ) Company Secretaries 13